Forecast

New York farms, businesses warn Trump on free trade pact

Businesses and farmers in New York are warning President Donald J. Trump against abandoning a free trade pact that supports trade and jobs between the state and Canada.

Five business groups from New York were among more than 300 nationwide from all 50 states that wrote to the president this week, urging that any changes to the North American Free Trade Agreement preserve the "deep economic ties the U.S. continues to enjoy."

Trump has been critical of the 23-year-old pact with Canada and Mexico, and has repeated threats as recently as this week to withdraw from it as his administration continues to negotiate potential changes with those two countries. He has blamed the agreement for destroying America jobs.

Canada is the state's largest trading partner, and is a major player in its economy, particularly in the northern regions near the border.

Currently, there are more than 700 Canadian-owned companies in the state, which employ more than 72,000 people with combined payrolls of more than $4 billion, according to Canadian government figures. Each year, there is about $30 billion in trade between that country and New York.

"When it comes to Canada, we must above all else do no harm and then, hopefully, agree on some valuable updates and enhancements," said Garry Douglas, president and CEO of the North Country Chamber of Commerce. The group represents more than 3,200 businesses spread across five northern counties.

Also signing the letter to the president was the Business Council of New York, which represents 2,400 large and medium-sized businesses from across the state.

"Canada is extremely important to the economy of New York," said council spokesman Zack Hutchins. "Our ties account for about a half-trillion dollars in economic activity, and it is important this remain intact and strong. Our members, particularly in the North County, are very concerned about these negotiations."

From his headquarters in Plattsburgh, Douglas called Canada "the single greatest driving force in the regional economy. In Clinton County alone, there are almost 100 Quebec-based companies. and 15 percent of the county workforce today works for a Canadian or border-related employer."

Not everyone spoke in support of NAFTA. State AFL-CIO President Mario Cilento was critical of the agreement.

"NAFTA has failed working people in the United States, Canada, and Mexico. While overall trade volume and corporate profits are up, wages in all three countries have remained stagnant, despite gains in productivity," Cilento said. "It's not enough to simply tweak the agreement; for NAFTA to work for working people, it must create jobs by adding currency rules that are enforceable.

"We must also protect Buy American requirements to ensure responsible government procurement and include strong and enforceable labor rules," Cilento said.

The chamber letter to President Trump in support of NAFTA was also signed by the Tompkins County Chamber of Commerce, the Buffalo Niagara Partnership, and the Brooklyn Chamber of Commerce. Capital Region Chamber of Commerce CEO Mark Eagan said his group was unaware of the letter in advance, but "would have signed it if we had known."

He called Canadian and New York's economic ties "almost unfathomable ... tweaks are one thing, but we cannot throw out the baby with the bathwater."

New York's farmers would be hurt if NAFTA was dropped, said Steve Ammerman, a spokesman for the New York State Farm Bureau.

"To walk away from that deal would be troubling for New York. Dairy and apples are just two of the commodities that benefit from fair trade agreements, and we have seen stronger prices for our products," he said.

While some rules on dairy and wine products should be changed, he said that "agriculture must have a seat at that table, a table this country cannot afford to walk away from."

This week, the American Farm Bureau Federation, which represents state-based farm groups, launched a nationwide effort to protect NAFTA. That group warned against "aggressive, unilateral trade actions."

In anticipation of President's Trump's opposition to NAFTA. a high-ranking Canadian economic official visited western New York this May. Democratic Institutions Minister Karina Gould said the Buffalo region alone has more than 200 Canadian companies that employ more than 50,000 people.